Partially repaired damage

Where a ship is only partially repaired, the insured is entitled to the reasonable cost of such repairs plus an allowance for the reduction in the ship’s market value because of the failure to effect full repairs. The aggregate must not exceed the cost of full repairs (Marine Insurance Act 1906, s.69(2)). See UNREPAIRED DAMAGE.

Participating

A policy that pays dividends to the policy owner. This term can also refer to insurance that pays a portion of the loss, along with other insurance coverage that applies to the same risk.

Participating insurance

Type of insurance provision in which the insured is entitled to receive policy dividends that reflect the difference between the premium charged and actual costs. Premiums are calculated to give some margin over the expected cost of the insurance protection. Also called participating policy.